A manufacturing contract is a document signed between a manufacturing company and another firm which has developed or created a product, whereby they lay down the terms and conditions on the basis of which the manufacturer will make the product. Some companies manufacture their own products while others enter into a contract with manufacturing companies which take the responsibility of making those products on a mass scale in return for a compensation amount. These products shall have the brand label of the company which has developed them and not that of manufacturing company.
The terms may include different aspects like how many units will be manufactured, what will be the price set for the item and how will they be delivered to company or retail outlets. Besides these, a manufacturing contract must also talk about deliverables, shipping, mode of payment, compensation amount to be paid to the manufacturing company, product liability, inventory management, product refund, conditions under which the agreement will be terminated and so on.
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Sample Manufacturing Contract Agreement
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